Day Trading For Beginners

Day trading for beginners refers to the process of buying and selling a given financial instrument within the span of one trading day. In this type of trading, you must close your positions at the close of the trading day and begin afresh the following day. When learning to trade, you’ll find that day traders often buy and sell tons of different assets all within a day.

In some cases, they get to do this more than once, with the main goal of capitalizing on the small market movements. Before we go any further, we would like to point out that day trading is in no way suited for individuals who want to engage in part-time trading. The reality is that day trading for beginners requires that you make many quick decisions and be able to execute multiple trades for relatively tiny profit margins.

Beginner trading is, therefore, the opposite of normal investment strategies. These are strategies that involve following certain price movements over extended durations.

How To Choose The Best Day Trading Broker For Beginners

Advancements happening in the tech sector have helped create an influx of online brokers over the past decade. However, identifying the best brokers for beginner day traders is not always as simple as you may want. Join us below as we guide you on how to choose an online broker that will meet all your trading needs.

Who Are Beginner-friendly Brokers?

Online brokers act as the middlemen between the individuals buying financial instruments and those selling them. Brokers generally charge a commission or a fee to help facilitate the buying and selling of these assets via their platform.

In this scenario, facilitation involves investing in high-performance technologies that will enable their clients to access multiple trade markets and tools.

What Is An Online Brokerage Account?

It refers to a trading account that you open on a platform such as Audacity Capital. When trading, this is the account you’ll use to trade financial securities. It’s also the same place where all your transactions – profits and losses – will be recorded. Before you can engage in any form of trading, you’ll first need to fund the account.

You can then make withdrawals after a successful trade. Operating an online brokerage account means you’re able to trade numerous markets at any one given time. The best brokers for beginner day traders will allow you to use their trading platforms to speculate on asset prices without ever having to own them.

Understanding How A Brokerage Account Works

There are several steps to using an online brokerage account, as shown below:

1. Deposit Funds: After opening the brokerage account, you’ll need to deposit funds to enable you to begin speculating on asset prices. Depending on the broker, you may need to deposit the funds immediately after the account becomes active. However, others will only require you to upload the funds when you’re ready to open a trade position. Some of the common methods used to fund brokerage accounts include PayPal, credit and debit cards, and direct deposit. Please note that funding methods can vary from one broker to the next.
2. Choose the Market You Want to Trade In: When working with the best brokers for beginner day traders you should think of your online brokerage account as a doorway to accessing various financial markets. The broker will provide a list of markets to trade. It’s then up to you to decide which markets best meet your trading needs.
3. Consider Your Preferred Position Size and Cost: After choosing the markets you want to concentrate in, all that’s left is for you to determine the size of the position to take. While at it, you should also decide on the amount of capital that you’ll invest. Be informed that the broker will charge you to use their platform. The good news is that they charge low fees to make this happen, meaning you don’t have much to worry about.
4. Observe the Market Movements: There’s one important thing you need to understand: the best brokers for beginner day traders won’t oversee your online brokerage account –you’ll. For this reason, you must take time to study the money markets and frequently check on your trade positions to track their performance. Remember, every position you open or close with your account will attract risk. Therefore, make it a point to understand the ins and outs of operating an online brokerage account, including the markets you wish to trade.

Understand Your Trading Style

After performing a broker comparison, it will be important that you narrow down on a trading style. Your preferred trading style will, in many cases, depend on your appetite for risk and your personal preferences. Opening a demo account with the best brokers for beginner day traders allows you to trade in a risk-free environment. This is one of the best ways to find a trading style that will work for you.

In most cases, your preferred trading style will have a direct impact on your choice of broker. This is because not all the brokers in the industry provide the same markets or products. Today, some of the most commonly used trading styles include:

Choosing The Best Brokers For Beginner Day Traders

There are several essential factors to consider when looking for an online broker, such as available trading tools, account types, available markets, transaction fees, and other costs. You may also want to consider the trading hours.

1. Markets

Different brokers will provide access to different markets. Common markets include:

• Shares: Trade in individual company stocks, e.g., Alibaba and Tesla
• Initial Public Offerings: Trade on firms that are making their debut on stock exchanges worldwide
• Forex: Buy and sell different currency pairs, such as GBP/CHF or EUR/USD.
• Interest Rates: Take a position on your forecasted direction of global interest rates
• Commodities: Buy and sell soft or hard commodities such as wheat, gold, and oil.

Regardless of the market you choose, your trading style, or your risk appetite, make sure to have a good risk management strategy in place.

2. Educational Material

The best brokers for beginner day traders should provide access to plenty of learning resources and training materials that will guide you on your trading journey. Keep in mind that it’s crucial to understand how trading works before you can open a position. Audacity Capital provides you with tons of training materials to help you advance your day-trading knowledge and skills.

3.Trading Platform

A trading platform refers to the tools you’ll be using to trade. Every broker in this industry will have some sort of platform. It can either be their own platform or be a third-party system. What matters here are the platform features.

You’ll want to confirm that the platform provided by the best brokers for beginner-day traders has a simple and clean design. It should provide you with seamless access to various markets. Additionally, you should be able to use interactive features such as news and analysis, charts, alerts and signals, and live streams.

4. Trading Costs

When trading with any online broker, there are costs that you must consider. While it won’t cost anything to create a trading account, there are various charges that will be incurred when opening and closing a position on the platform. Examples of direct costs you can expect to incur will include the spread, overnight funding charges, and other broker fees.

The costs you’ll incur will depend on your trading style. For example, if you’re a day trader, you won’t need to worry about commissions or overnight funding charges. Certain factors may impact the cost of your trade positions. These are slippage, margin, and volume-based rebates.

Audacity Capital is one of the best brokers for beginner day traders and has been empowering professional traders since 2012. Some of its enhanced features include integrated user wallets, a real-time leaderboard, quick support contact, and economic calendars.